European investment and asset manager Cording Real Estate Group has launched a new investment fund focusing on light industrial and small logistics assets in the eurozone.
The open-ended Cording Euro Industrial Real Estate Fund has a core-plus risk profile and is aimed at institutional investors. It has been seeded with equity from the Edmond de Rothschild Real Estate investment platform and a mandate from the real estate team of Credit Suisse Asset Management.
The fund has already signed terms to acquire seven assets and aims to deliver an average net income return of more than 6% per annum over a 10-year period. It will be domiciled in Luxembourg in the form of an FC-RAIF, with Pancura SA acting as alternative investment fund manager and Aztec Group as the central administrator.
Reiner Beckers, head of business development at Cording, said: 'We believe this is a perfect time to launch an industrial fund. There is the opportunity to benefit from expected rental growth owing to the demand for space outstripping supply. This is particularly true of industrial sites in urban areas.'
Cording currently has more than €300 mln of industrial properties and investments under management. The company was advised by Clifford Chance lawyers in Luxembourg and Frankfurt and by EY on the structure of the fund.